Family Farm Inheritance Act

Family Farm Inheritance Act - Provides that for purposes of the estate tax imposed, under the Internal Revenue Code of 1954, the value of the taxable estate shall be determined by deducting from the value of the gross estate the lesser of: (1) $200,000, and (2) the value of the decedent's interest in a family farming operation continually owned by him or his spouse during the five years prior to the date of his death and which passes or has passed to an individual or individuals related to him or his spouce.

States that the difference between the tax actually paid under this Act on the transfer of the estate and the tax which would have been paid on that transfer had the interest in a family farming operation not given rise to a deduction shall be a deficiency in the payment of the tax assessed on that estate unless for at least five years after the decedent's death: (1) the interest which gave rise to the deduction is retained by the individual or individuals to whom such interest passed, and (2) the individual or any of the individuals to whom the interest passed resides on such farm, and (3) such farm continues to qualify as a family farming operation.